Overview

Investment Strategy

The goal of the Portfolio is to provide investors access to attractive investment opportunities among large cap, durable, well-managed businesses, primarily in the U.S. We seek to purchase these businesses at value prices and hold them for the long term. This approach can make the Davis Large Cap Value SMA a potential foundation for an investor's diversified equity portfolio.

Using our signature Davis Investment Discipline, the Portfolio has:

  • outperformed the Russell 1000 Value Index over the past 20 years.
  • outperformed the S&P 500® Index since its inception in 1969.

Portfolio Managers

Chris C. Davis
37 Years Industry Experience
36 Years at Davis Advisors
View Bio
Danton G. Goei
29 Years Industry Experience
27 Years at Davis Advisors
View Bio

Attractive Average Returns as of 6/30/25

The Davis Large Cap Value SMA has outperformed the Russell 1000 Value over the past 3, 5, 10 and 20 year periods (gross of fees).

A Shares: Quarterly (as of 6/30/25)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr 20 Yr
Large Cap Value SMA (Gross) 7.72% 9.60% 20.28% 15.63% 11.48% 9.06%
With a 3% maximum wrap fee 6.13% 6.38% 16.77% 12.25% 8.20% 5.91%
Russell 1000 Value 6.00% 13.70% 12.75% 13.92% 9.18% 8.11%
S&P 500 6.20% 15.16% 19.69% 16.63% 13.63% 10.72%

The performance presented represents past performance and is not a guarantee of future results. Total return assumes reinvestment of dividends. Investment return and principal value will vary so that an investor may lose money. Current performance may be higher or lower. The investment strategies described herein are those of Davis Advisors. These materials are being provided for illustrative and informational purposes only. The information contained herein is obtained from multiple sources that are believed to be reliable. However, such information has not been verified, and may be different from the information included in documents and materials created by the sponsor firm in whose investment program a client participates. Some sponsor firms may require that these materials are preceded or accompanied by investment profiles or other documents or materials prepared by such sponsor firms, which will be provided upon a client’s request. For additional information, documents and/or materials, please speak to your Financial Advisor. For additional information, documents and/or materials, please speak to your Financial Advisor. Davis Advisors fee schedules are described in Part 2 of its Form ADV.


"By being highly selective and rejecting the vast majority of companies in the index, we've uncovered businesses with highly attractive earnings growth, yet selling at some of the lowest valuations we have ever seen. We believe this sets the stage for attractive returns in the years ahead."

- Portfolio Manager Chris Davis

Selective Attractive Growth Undervalued

Large Cap Value SMA Portfolio invests in only a select group of well-researched companies

Large Cap Value SMA Portfolio's portfolio companies have grown more than the indexes

Large Cap Value SMA Portfolio's portfolio companies are significantly less expensive than the indexes

Holdings EPS Growth (5 Year) P/E (Forward)
873
503
30
20.2%
15.1%
11.1%
14.4x
23.1x
18.3x
Portfolio
S&P 500
Russell 1000 Value
The companies of Davis Large Cap Value SMA Portfolio have grown more than the companies in the indexes, yet are significantly less expensive:
  • P/E 38% less expensive than the S&P 500®
  • P/E 21% less expensive than the Russell 1000 Value Index

Portfolio Details as of 6/30/25

Detail Value
Objective Long-Term Capital Appreciation
Category Large Cap Value

A Shares

Detail Value
Inception Date 4/1/69
Benchmark S&P 500

Performance as of 6/30/25

Attractive Average Returns as of 6/30/25

A Shares: Quarterly (as of 6/30/25)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr 20 Yr
Large Cap Value SMA (Gross) 7.72% 9.60% 20.28% 15.63% 11.48% 9.06%
With a 3% maximum wrap fee 6.13% 6.38% 16.77% 12.25% 8.20% 5.91%
Russell 1000 Value 6.00% 13.70% 12.75% 13.92% 9.18% 8.11%
S&P 500 6.20% 15.16% 19.69% 16.63% 13.63% 10.72%

The performance presented represents past performance and is not a guarantee of future results. Total return assumes reinvestment of dividends. Investment return and principal value will vary so that an investor may lose money. Current performance may be higher or lower. The investment strategies described herein are those of Davis Advisors. These materials are being provided for illustrative and informational purposes only. The information contained herein is obtained from multiple sources that are believed to be reliable. However, such information has not been verified, and may be different from the information included in documents and materials created by the sponsor firm in whose investment program a client participates. Some sponsor firms may require that these materials are preceded or accompanied by investment profiles or other documents or materials prepared by such sponsor firms, which will be provided upon a client’s request. For additional information, documents and/or materials, please speak to your Financial Advisor. For additional information, documents and/or materials, please speak to your Financial Advisor. Davis Advisors fee schedules are described in Part 2 of its Form ADV.

Growth of $100,000 (Gross)

Key Takeaway A hypothetical $100,000 investment has compounded to $71.3 million since the 4/1/1969 inception (gross of fees).

Growth net a hypothetical 3% maximum fee: 1 Year, $106,378; 3 Year, $159,199; 5 Year, $178,185; 10 Year, $219,973; 20 Year, $315,086; 30 Year, $1,000,834; 40 Year, $4,852,400; and Inception, $31,124,477.

Percentage of Time the Large Cap Value SMA Portfolio Has Outperformed the Market
(4/1/69 - 6/30/25)

Key Takeaway As shown, the probability of outperformance has increased the longer an investor has stayed with us.

Portfolio Characteristics as of 6/30/25

Portfolio Composition

Item Large Cap Value SMA Portfolio S&P 500®
P/E (Forward) 14.4x 23.1x
P/B Ratio 3.4 4.7
Beta (3 Year) 1.1% 1.0%
5 Year Earnings Growth 20.2% 15.1%
Standard Deviation (5 year) 18.3 16.3
Number of Holdings 30 503
Weighted Average Market Cap ($bn) 470.5 1,088.8
Median Market Cap ($bn) 50.0 36.2
Active Share 83% N/A
Turnover Rate 24% N/A
Mastering the Mental Game of Investing

Mastering the Mental Game of Investing

A video series to help you develop the mindset of a successful investor.

Watch the Series

Portfolio Holdings

Top 10 Holdings: Quarterly (as of 6/30/25)

Holding Ticker Large Cap Value SMA Portfolio S&P 500®
Meta Platforms META 7.0% 3.1%
Capital One Financial COF 7.0% 0.3%
Berkshire Hathaway BRK B 6.9% 1.7%
Applied Materials AMAT 6.4% 0.3%
U.S. Bancorp USB 5.8% 0.1%
MGM Resorts MGM 5.1% < 0.1%
Amazon.com AMZN 5.1% 4.0%
CVS Health CVS 4.9% 0.2%
Alphabet GOOGL 4.7% 3.5%
Texas Instruments TXN 4.1% 0.4%
Total 57.0% 13.5%

All Holdings: Quarterly (as of 6/30/25)

Holding Ticker Large Cap Value SMA Portfolio S&P 500®
Meta Platforms META 7.0% 3.1%
Capital One Financial COF 7.0% 0.3%
Berkshire Hathaway BRK B 6.9% 1.7%
Applied Materials AMAT 6.4% 0.3%
U.S. Bancorp USB 5.8% 0.1%
MGM Resorts MGM 5.1% < 0.1%
Amazon.com AMZN 5.1% 4.0%
CVS Health CVS 4.9% 0.2%
Alphabet GOOGL 4.7% 3.5%
Texas Instruments TXN 4.1% 0.4%
Viatris VTRS 4.1% < 0.1%
Wells Fargo WFC 3.9% 0.5%
Markel Group MKL 3.5%
Tyson Foods TSN 3.4% < 0.1%
Teck Resources TECK 2.6%
Humana HUM 2.4% 0.1%
Solventum SOLV 2.4% < 0.1%
UnitedHealth Group UNH 2.4% 0.5%
Microsoft MSFT 1.9% 7.0%
Chubb CB 1.9% 0.2%
Owens Corning OC 1.8%
Coterra Energy CTRA 1.6% < 0.1%
Restaurant Brands International QSR 1.5%
ConocoPhillips COP 1.5% 0.2%
AGCO AGCO 1.3%
Quest Diagnostics DGX 1.3% < 0.1%
Cigna Group CI 1.1% 0.2%
IAC IAC 0.7%
Darling Ingredients DAR 0.5%
ANGI ANGI 0.2%
CASH N/A 3.0%

Sector Allocation

Sector Large Cap Value SMA Portfolio S&P 500®
Financials 29.9% 14.0%
Health Care 19.2% 9.3%
Communication Services 13.0% 9.8%
Information Technology 12.8% 33.1%
Consumer Discretionary 12.1% 10.4%
Consumer Staples 4.0% 5.5%
Industrials 3.2% 8.6%
Energy 3.2% 3.0%
Materials 2.7% 1.9%
Utilities 2.4%
Real Estate 2.0%

Market Cap Breakout

Large Cap Value SMA Portfolio
Market Percentage
Large 92.0%
Mid 7.1%
Small 0.9%
S&P 500® Index
Market Percentage
Large 99.6%
Mid 0.4%
Small 0.0%

Commentary

Portfolio Commentary

Document Description Date
Portfolio Commentary - Semi-Annual Review 2025 A quarterly discussion of the market environment, Portfolio performance, major positions and investment opportunities. June 2025

Factsheet

Fact Sheets

Document Description Date
Fact Sheet Goals of the Portfolio, top holdings, characteristics and Portfolio attributes. June 2025

Literature

Document Description Date
Quarterly Review Book A comprehensive quarterly update on the Portfolio, including commentary on investment strategy, performance, Portfolio statistics and holdings. June 2025
Davis Large Cap Value SMA: Attractive Growth. Undervalued. World Class Businesses. Distinguished by companies with earnings growth higher and P/Es significantly lower than the Index – World-class businesses positioned for opportunities in today’s market March 2025
Davis Large Cap Value SMA: Selective. Attractive Growth. Undervalued. Our companies are rigorously researched, offer attractive growth and yet are significantly undervalued versus the Index – A powerful combination. June 2025
Davis Large Cap Value SMA: A History of Outperformance Discusses the Davis Large Cap Portfolio's growing success in beating the S&P 500® as the holding period increased (ultimately reaching 100%). June 2025
Portfolio Holdings Quarterly report listing company positions, weightings in the Portfolio versus the Index June 2025
Davis LCV SMA: A History of Attractive Results The consistently attractive performance of Davis LCV SMA over the past 2 decades. June 2025
Davis LCV SMA: A Premier Value-Oriented Strategy Attributes of the Portfolio, its growing, undervalued companies and attractive results. June 2025